Nifty spikes up 2%. Pranab clarifies on P-Notes

The Markets zoomed, after the Finance Minister Pranab Mukherjee issued a statement clarifying the air on the issue of P-notes being taxed under the GAAR. The Minister has indicated that the government is not willing to harass genuine investors. He told that the IT department would examine the taxability of FIIs and would not go beyond FII issuing P-notes. He further added that there was no tax liability on holders of P-notes.

Markets have taken a strong cue from the FM’s statement. The Sensex moved up by over 300 points while the Nifty has managed to move up by 92 points.

The Nifty closed 2% higher at 5281, up by 103 points The Bank Nifty recorded a full 2.6% gain.

ICICI Bank, SBI, HDFC Bank and PNB – have all moved up significantly. ICICI Bank closed 3.6% higher. SBI and HDFC Bank were up by 1.5%, while PNB was close to 2% up.

Stocks from the metal sector including Tata steel, Hindalco, Sterlite and SAIL – have also shot up. Tata Steel was up by 3.5%. Hindalco closed 3.7% above.

Big boy Reliance industries moved up by 3.2%, causing the index move up. ONGC also moved up by over 3%.

The biggest gainer was Hindustan Petroleum (HINDPETRO), which shot up by over 7%.

Markets have seen a rising of over 1%. The midcap stocks have too rallied 1%. The Bank Nifty gained more than 150 points, supported by ICICI Bank with 2% gains and State Bank of India with 1.4%. Punjab National Bank jumped 2% while rival HDFC Bank was up 0.6%.

Among metals and mining, Tata Steel, Sterlite Industries, Hindalco and Coal India moved up 1.5-2%.
About three shares advanced for every share falling on the National Stock Exchange.JHS Svendgaard rallied more than 15% amid heavy volume, which shot up 20%